Uruguay Country Information

Montevideo, founded by the Spanish in 1726 as a military stronghold, soon took advantage of its natural harbor to become an important commercial center. Claimed by Argentina but annexed by Brazil in 1821, Uruguay declared its independence four years later and secured its freedom in 1828 after a three-year struggle. The administrations of President Jose BATLLE in the early 20th century established widespread political, social, and economic reforms that established a statist tradition. A violent Marxist urban guerrilla movement named the Tupamaros, launched in the late 1960s, led Uruguay's president to cede control of the government to the military in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold over the government. Civilian rule was not restored until 1985. In 2004, the left-of-center Frente Amplio Coalition won national elections that effectively ended 170 years of political control previously held by the Colorado and Blanco parties. Uruguay's political and labor conditions are among the freest on the continent.

Geography

Uruguay

Location:

Southern South America, bordering the South Atlantic Ocean, between Argentina and Brazil

seasonally high winds (the pampero is a chilly and occasional violent wind that blows north from the Argentine pampas), droughts, floods; because of the absence of mountains, which act as weather barriers, all locations are particularly vulnerable to rapid changes from weather fronts

27 November 1966, effective 15 February 1967; suspended 27 June 1973, new constitution rejected by referendum 30 November 1980; two constitutional reforms approved by plebiscite 26 November 1989 and 7 January 1997

Legal system:

based on Spanish civil law system; accepts compulsory ICJ jurisdiction

Suffrage:

18 years of age; universal and compulsory

Executive branch:

chief of state: President Tabare VAZQUEZ Rosas (since 1 March 2005); Vice President Rodolfo NIN NOVOA (since 1 March 2005); note - the president is both the chief of state and head of government head of government: President Tabare VAZQUEZ Rosas (since 1 March 2005); Vice President Rodolfo NIN NOVOA (since 1 March 2005) cabinet: Council of Ministers appointed by the president with parliamentary approval elections: president and vice president elected on the same ticket by popular vote for five-year terms (may not serve consecutive terms); election last held 31 October 2004 (next to be held in October 2009) election results: Tabare VAZQUEZ elected president; percent of vote - Tabare VAZQUEZ 50.5%, Jorge LARRANAGA 35.1%, Guillermo STIRLING 10.3%; other 4.1%

Legislative branch:

bicameral General Assembly or Asamblea General consists of Chamber of Senators or Camara de Senadores (30 seats; members are elected by popular vote to serve five-year terms; vice president has one vote in the Senate) and Chamber of Representatives or Camara de Representantes (99 seats; members are elected by popular vote to serve five-year terms) elections: Chamber of Senators - last held 31 October 2004 (next to be held October 2009); Chamber of Representatives - last held 31 October 2004 (next to be held October 2009) election results: Chamber of Senators - percent of vote by party - NA; seats by party - EP-FA 16, Blanco 11, Colorado Party 3; Chamber of Representatives - percent of vote by party - NA; seats by party - EP-FA 52, Blanco 36, Colorado Party 10, Independent Party 1

Judicial branch:

Supreme Court (judges are nominated by the president and elected for 10-year terms by the General Assembly)

nine equal horizontal stripes of white (top and bottom) alternating with blue; a white square in the upper hoist-side corner with a yellow sun bearing a human face known as the Sun of May with 16 rays that alternate between triangular and wavy

Economy

Uruguay

Economy - overview:

Uruguay's economy is characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. After averaging growth of 5% annually during 1996-98, in 1999-2002 the economy suffered a major downturn, stemming largely from the spillover effects of the economic problems of its large neighbors, Argentina and Brazil. For instance, in 2001-02 Argentina made massive withdrawals of dollars deposited in Uruguayan banks, which led to a plunge in the Uruguayan peso and a massive rise in unemployment. Total GDP in these four years dropped by nearly 20%, with 2002 the worst year due to the banking crisis. The unemployment rate rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. Cooperation with the IMF helped stem the damage. Uruguay in 2007 improved its debt profile by paying off $1.1 billion in IMF debt, and continues to follow the orthodox economic plan set by the Fund in 2005. The construction of a pulp mill in Fray Bentos, which represents the largest foreign direct investment in Uruguay's history at $1.2 billion, came online in November 2007 and is expected to add 1.6% to GDP and boost already rising exports. The economy has grown strongly since 2004 as a result of high commodity prices for Uruguayan exports, a strong peso, growth in the region, and low international interest rates.

18 years of age for voluntary and compulsory military service; enlistment is voluntary in peacetime, but the government has the authority to conscript in emergencies (2007)

Manpower available for military service:

males age 16-49: 837,252 females age 16-49: 824,096 (2008 est.)

Manpower fit for military service:

males age 16-49: 703,955 females age 16-49: 690,296 (2008 est.)

Manpower reaching militarily significant age annually:

male: 27,082 female: 26,075 (2008 est.)

Military expenditures:

1.6% of GDP (2006)

Transnational Issues

Uruguay

Disputes - international:

in Jan 2007, ICJ provisionally ruled Uruguay may begin construction of two paper mills on the Uruguay River, which forms the border with Argentina, while the court examines further whether Argentina has the legal right to stop such construction with potential environmental implications to both countries; uncontested dispute with Brazil over certain islands in the Quarai/Cuareim and Invernada streams and the resulting tripoint with Argentina

Illicit drugs:

small-scale transit country for drugs mainly bound for Europe, often through sea-borne containers; law enforcement corruption; money laundering because of strict banking secrecy laws; weak border control along Brazilian frontier; increasing consumption of cocaine base and synthetic drugs